Question 1: Explain why greater Trade results in productive economies?
Question 2: Following is the table and answer the following:
Combinations A B ? D
Grain 0 25 40 50
Tools 12 8 4 0
a) Draw a PPC, with tools on the horizontal axis.
Now, assume new technology that can be used only in the tool industry is developed, which increases tool output by 50%.
b) Draw a new PPC, that reflects this new technology.
c) If Finland produced 12 units of tools per year, how many units of grain could be produced after the introduction of the new technology?
Question 3: If the population of Canada is 20 million, the working age population is 15 million, the number of employed is 9 million and the number unemployed is 1 million:
i. What is the size of the labour force?
ii. What is the participation rate?
iii. What is the unemployment rate?
Question 4: The economy of Canada produces only two products, carrots and beans.
In 2019, it produced 5 million kilos of carrots and 2000 beans.
In 2020, production of carrots increased to 6 million and beans to 2200.
If the price of carrots increased from $2 to $2.50 per kilo and of beans from $50 000 to $52 000, calculate the value of nominal and real GDP (base year 2019)